Reliance Communications redeems $500 million worth of FCCBs

Reliance Communications said yesterday in a statement  that it had redeemed $500 million (Rs 2,250 crore) worth of bonds issued in May 2006 at a 25.84 per cent premium.

 India's second-biggest telco said the redemption of the zero-coupon foreign currency convertible bonds was completed yesterday.

 "The company has redeemed all the outstanding Foreign Currency convertible bonds (FCCBs) from the $500 million (Rs 2,250 crore) issue in May 2006," the statement said.

 The redemption, saw the company's equity capital remain the same and it did not have to allot 2,74,13,085 shares of Rs 5 each, arising from the conversion.

The company has a net worth of over $13.6 billion (Rs 64,000 crore), cash flows of $2.8 billion (Rs13,000 crore) and net profit of $1.8 billion (Rs8,400 crore), the company said. It boasts a customer base of over 138 million which includes over 2.5 million individual overseas retail customers.

 Reliance Communications had raised $1.5 billion though these bonds, and while $1 billion worth of bonds are expected to come for maturity by 2012 and $500 million worth were due to be redeemed in May.